FFW Corporation Announces Earnings for the Quarter and Six Months Ended December 31, 2010


WABASH, IN--(Marketwire - January 26, 2011) - FFW Corporation (the "Corporation") (OTCBB: FFWC) (1/25/2011 Close: $15.18), parent corporation of Crossroads Bank, announced earnings for the quarter and six months ended December 31, 2010.

For the three months ended December 31, 2010, the Corporation reported net income of $800,000 or $0.61 per common share. This is compared to net income of $554,000 or $0.40 per common share for the three months ended December 31, 2009. The net interest margin for the three months ended December 31, 2010 was $2,419,000 compared to $2,452,000 for the three months ended December 31, 2009. The provision for loan losses decreased from $840,000 for the period ended December 31, 2009 to $370,000 for the period ended December 31, 2010. Total noninterest income was $996,000 for the three months ended December 31, 2010 and $1,094,000 for the three months ended December 31, 2009. Noninterest expense was $1,950,000 for the three months ended December 31, 2010 and $2,013,000 for the three months ended December 31, 2009.

For the six months ended December 31, 2010, the Corporation reported net income of $1,293,000 or $0.94 per common share. This is compared to net income of $1,107,000 or $0.79 per common share for the six months ended December 31, 2009. The net interest margin for the six months ended December 31, 2010 was $4,769,000 compared to $4,999,000 for the six months ended December 31, 2009. The provision for loan losses was $845,000 for the six months ended December 31, 2010 and $1,250,000 for the six months ended December 31, 2009. Total noninterest income was $1,864,000 for the six months ended December 31, 2010 and $1,723,000 for the six months ended December 31, 2009. Noninterest expense was $4,026,000 for the six months ended December 31, 2010 and $4,064,000 for the six months ended December 31, 2009.

The three and six months ended December 31, 2010 represented a return on average common equity of 12.23% and 9.48%, respectively, compared to 8.00% and 8.15% for the three and six month periods ended December 31, 2009. The three and six months ended December 31, 2010 represented a return on average assets of 0.94% and 0.76%, respectively, compared to 0.64% and 0.65% for the three and six month periods ended December 31, 2009.

The allowance for loan losses as a percentage of gross loans receivable was 1.64% at December 31, 2010 and 1.57% at June 30, 2010. Nonperforming assets were $11,026,000 at December 31, 2010 and $8,695,000 at June 30, 2010.

As of December 31, 2010, FFWC's equity-to-assets ratio was 8.79% compared to 8.64% at June 30, 2010. Total assets at December 31, 2010 were $325,703,000 compared to $333,564,000 at June 30, 2010. Shareholders' equity was $28,617,000 at December 31, 2010 compared to $28,804,000 at June 30, 2010. Crossroads Bank exceeds all applicable regulatory requirements to be considered "well capitalized."

Crossroads Bank is a wholly owned subsidiary of FFW Corporation providing an extensive array of banking services and a wide range of investments and securities products through its main office in Wabash and four Indiana banking centers located in Columbia City, North Manchester, South Whitley, and Syracuse. The Bank provides leasing services at its banking centers and its Carmel, IN leasing and commercial loan office. Insurance products are offered through an affiliated company, Insurance 1 Services, Inc. The corporation's stock is traded on the OTC Bulletin Board under the symbol "FFWC.OB." Our website address is www.crossroadsbanking.com.


                                  FFW Corporation
                          Selected Financial Information


Consolidated Balance Sheet

                                               December 31      June 30
                                              -------------  -------------
                                                  2010           2010
                                              -------------  -------------
                                                Unaudited
Assets
Cash and due from financial institutions      $   3,693,297  $   3,229,138
Interest-earning deposits in other financial
 institutions                                    10,230,259      7,386,372
                                              -------------  -------------
   Cash and cash equivalents                     13,923,556     10,615,510
                                              -------------  -------------

Securities available for sale                    77,215,486     76,716,794
Loans receivable, net of allowance for loan
 losses of $3,543,248 at December 31, 2010
 and $3,582,476 at June 30, 2010                211,910,404    224,135,086
Loans held for sale                                 220,000         40,000
Federal Home Loan Bank stock, at cost             3,195,900      3,627,100
Accrued interest receivable                       1,602,755      1,645,286
Premises and equipment, net                       3,782,196      3,889,487
Mortgage servicing rights                           474,616        375,052
Cash surrender value of life insurance            6,516,090      6,374,995
Goodwill                                          1,213,898      1,213,898
Deferred tax asset                                2,546,416      1,893,647
Other assets                                      3,101,215      3,036,680
                                              -------------  -------------
   Total assets                               $ 325,702,532  $ 333,563,535
                                              -------------  -------------

Liabilities and shareholders' equity
Deposits
   Noninterest-bearing deposits               $  19,078,194  $  16,278,993
   Interest-bearing deposits                    260,405,345    262,550,500
                                              -------------  -------------
      Total deposits                            279,483,539    278,829,493
                                              -------------  -------------

Borrowings                                       14,562,945     24,699,557
Accrued expenses and other liabilities            3,039,339      1,230,602
                                              -------------  -------------
   Total liabilities                            297,085,823    304,759,652
                                              -------------  -------------

Shareholders' equity
Preferred stock, $.01 par; $1,000 liquidation
 value per share; 500,000 shares authorized;
   Series A, 5% Fixed Rate Cumulative
    Perpetual Preferred Stock - 7,289 shares
    outstanding September 30, 2010,
    $7,336,000 liquidation preference             7,044,847      7,004,155
   Series B, 9% Fixed Rate Cumulative
    Perpetual Preferred Stock - 364 shares
    outstanding September 30, 2010, $368,000
    liquidation preference                          389,753        394,045
Common stock, $.01 par; 2,000,000 shares
 authorized;
   issued: 1,836,328
   outstanding: 1,121,884 shares - December
    31, 2010 and 1,117,260 shares - June 30,
    2010                                             18,363         18,363
Additional paid-in capital                        9,404,725      9,440,356
Retained earnings                                23,443,827     22,880,556
Accumulated other comprehensive income             (718,112)       104,080
Treasury stock, at cost: 708,068 shares -
 June 30, 2010 and 719,068 shares - June 30,
 2010                                           (10,966,694)   (11,037,672)
                                              -------------  -------------
   Total shareholders' equity                    28,616,709     28,803,883
                                              -------------  -------------

                                              -------------  -------------
   Total liabilities and shareholders' equity $ 325,702,532  $ 333,563,535
                                              -------------  -------------






Consolidated Statement of Income

                           Three Months Ended         Six Months Ended
                              December 31                December 31
                        ------------------------  -------------------------
                            2010         2009         2010         2009
                        -----------  -----------  ------------ -----------
                         Unaudited    Unaudited    Unaudited    Unaudited
Interest and dividend
 income:
  Loans, including fees $ 3,064,258  $ 3,481,420  $  6,180,322 $ 7,119,354
  Taxable securities        620,845      633,570       877,677   1,291,257
  Tax exempt securities     156,186      172,879       682,099     351,803
  Other                      13,778        9,062        22,096      13,888
                        -----------  -----------  ------------ -----------
    Total interest and
     dividend income      3,855,067    4,296,931     7,762,194   8,776,302
                        -----------  -----------  ------------ -----------

Interest expense:
  Deposits                1,202,595    1,397,140     2,476,922   2,865,063
  Borrowings                233,610      448,278       516,697     912,730
                        -----------  -----------  ------------ -----------
    Total interest
     expense              1,436,205    1,845,418     2,993,619   3,777,793
                        -----------  -----------  ------------ -----------

Net interest income       2,418,862    2,451,513     4,768,575   4,998,509

Provision for loan
 losses                     370,000      840,000       845,000   1,250,000

Net interest income
 after provision for
  loan losses             2,048,862    1,611,513     3,923,575   3,748,509

Noninterest income:
  Net gains on sales of
   securities               157,970      472,337       257,739     474,708
  Net gains on sales of
   loans                    158,078       72,762       319,235     164,180
  Net gains (losses) on
   fixed assets                   -            -             -           -
  Other than temporary
   impairment on
   securities                     -     (150,000)            -    (150,000)
  Commission income         168,717      145,566       329,683     298,538
  Service charges and
   fees                     462,322      366,051       780,420     644,166
  Earnings on life
   insurance                 70,199       70,273       141,096     139,471
  Other                     (20,969)     117,269        35,604     151,596
                        -----------  -----------  ------------ -----------
    Total noninterest
     income                 996,317    1,094,258     1,863,777   1,722,659
                        -----------  -----------  ------------ -----------

Noninterest expense:
  Salaries and benefits     982,765    1,009,152     2,015,592   2,017,304
  Occupancy and
   equipment                242,077      242,636       492,841     478,434
  Professional               96,524       89,352       197,571     160,621
  Marketing                  42,048       33,664        82,920      73,657
  Deposit insurance
   premium                  119,896      117,360       238,787     235,537
  Regulatory assessment      25,441       24,299        50,883      48,597
  Correspondent bank
   charges                   19,088       18,277        40,435      37,696
  Data processing            94,048      139,548       220,398     272,422
  Printing, postage and
   supplies                  55,762       59,258       107,204     127,504
  Expense on life
   insurance                 (4,857)      16,694        11,213      33,388
  Contribution expense       18,757       11,784        37,380      25,201
  Other                     258,106      250,936       530,519     553,518
                        -----------  -----------  ------------ -----------
    Total noninterest
     expense              1,949,655    2,012,960     4,025,743   4,063,879
                        -----------  -----------  ------------ -----------

Income before income
 taxes                    1,095,524      692,811     1,761,609   1,407,289

Income tax expense          295,245      138,978       468,301     300,148

                        -----------  -----------  ------------ -----------
Net income              $   800,279  $   553,833  $  1,293,308 $ 1,107,141
                        -----------  -----------  ------------ -----------
Preferred stock
 dividends and discount
 accretion, net             117,504      117,503       235,008     235,005
                        -----------  -----------  ------------ -----------
Net income attributable
 to common shareholders $   682,775  $   436,330  $  1,058,300 $   872,136
                        -----------  -----------  ------------ -----------






                        Three Months Ended           Six Months Ended
                            December 31                 December 31
                    --------------------------  --------------------------
                        2010          2009          2010          2009
                    ------------  ------------  ------------  ------------
                      Unaudited     Unaudited     Unaudited     Unaudited
Per common share
 data:
Earnings            $       0.61  $       0.40  $       0.94  $       0.79
Diluted earnings    $       0.61  $       0.40  $       0.94  $       0.79
Dividends paid      $       0.22  $       0.22  $       0.44  $       0.44
Average shares
 issued and
 outstanding           1,122,516     1,112,260     1,123,491     1,112,260
Shares outstanding
 end of period         1,121,884     1,112,260     1,121,884     1,112,260

Supplemental data:
Net interest margin
 **                         3.00%         3.01%         2.96%         3.10%
Return on average
 assets ***                 0.94%         0.64%         0.76%         0.65%
Return on average
 common equity ***         12.23%         8.00%         9.48%         8.15%

                     December 31     June 30
                    ------------  ------------
                        2010          2010
                    ------------  ------------
Nonperforming
 assets *           $ 11,026,078  $  8,694,798
Repossessed assets  $  1,384,915  $  1,230,635

* Includes non-accruing loans, accruing loans delinquent more than 90 days
  and repossessed assets
** Yields reflected have not been computed on a tax equivalent basis
*** Annualized

Contact Information: FOR MORE INFORMATION Contact: Emily Boardman Treasurer 260-563-3185